Dubai PR Network, Online Press Release from Dubai and Middle East
Filter PR by
  
Moody's reaffirms Sharjah's A3 credit rating and highlights “credit-positive” 2015 budget

Moody’s Investors Services, a leading international credit rating agency, has confirmed that the Emirate of Sharjah will continue to enjoy a strong “A3” long-term credit rating with a stable outlook.
The rating agency’s Credit Opinion, published on 23 January 2015, highlights:

• “the emirate’s strong government finances”, with a “very strong fiscal and government debt position”;
• Sharjah’s “diversified economic structure with a competitive manufacturing sector” and “the government’s focus on education [which] is supportive for the emirate’s economic growth potential”;
• the Government of Sharjah’s first public debt issuance, a US$ 750 million, 10-year sukuk which “reduced the average borrowing cost of the government” and was more than ten times oversubscribed by investors.

In a separate report, published on 5 February 2015 under the heading Sharjah’s 2015 Budget Shows Credit-Positive Fiscal Trend, Moody’s assesses the emirate’s 2015 budget, which was announced on 27 January, as well as preliminary data for the 2014 budget outturn.

The analysis notes that 'the 2014 figures show a lower-than-budgeted cash deficit for the year”, while the 2015 budget envisages “a stabilisation in the deficit, a credit-positive trend”. 

Moody’s analysis states that “the assumptions underlying the 2015 revenue projections appear conservative”, consistent with the Government of Sharjah’s longstanding prudent approach to management of the public finances. 

Addressing the issue of recent falls in oil prices, the agency emphasises the diversity of Sharjah’s revenue base, noting that “Sharjah has a relatively small oil and gas sector which contributes 13% to GDP and 14% to total revenue, much less than that of regional peers', and that 'the government plans increased land sales in 2015 (compared to the 2014 outturn) and to implement other revenue-enhancing measures.”

Commenting on Moody’s reports, Sheikh Mohamed Bin Saud Al Qasimi, Chairman of Sharjah Finance Department, stated: “We thank Moody’s for their reports and for their recognition of our commitment to develop the local economy in a sustainable manner that delivers social benefits to local citizens and residents. 

The success of our recent public sukuk issuance demonstrates a high level of confidence among investors in Sharjah’s economy and in the Government’s prudent management of the public finances.”

Tom Koczwara, Director of Sharjah’s Debt Management Office, stated:
“Moody’s rating process is a thorough and rigorous examination of a government’s creditworthiness, and we are proud to maintain a strong rating with them.  Our credit ratings are an important element of our strategy to manage the cost and risk associated with government borrowing, and we are particularly pleased to note the positive direction of travel highlighted in Moody’s note on the 2015 budget.”

The Emirate of Sharjah has since January 2014 held a long-term credit rating of A3 with stable outlook from Moody’s Investor Services, and a rating of A with stable outlook from Standard & Poor’s.  Standard & Poor’s reaffirmed Sharjah’s A rating in November 2014.

Posted by : GoDubai PR Dept, -
Viewed 13682 times
PR Category : Government, Legal & Humanity
Posted on : Monday, February 9, 2015  12:23:00 AM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to

Related Stories


 
 
Most Viewed Press Release posted in the last 7 days
Move Aside C-beauty, K-beauty and J-beauty - There's a New Trend in Town and It Hails Fro... [7125-Views]
Inglot Cosmetics Partners With Cartoon Network for Limited Edition “The Powerpuff Girls” B... [6875-Views]
Autumn/Winter 19: Step out in the latest styles with City Centre Deira and City Centre Mir... [6570-Views]
Think LUNETTE for an earth-friendly period [5722-Views]
ACE launches its new and inspirational Outdoor collection [4654-Views]
Dress for Diwali With the Rack by Kachins [4551-Views]
Restoration by Parmigiani Fleurier -The Yusupov Egg [4526-Views]
Chain Reaction [4526-Views]
Sandro Launches Evening Capsule Collection [4319-Views]
‘A Gift of Gold' offers at Malabar Gold & Diamonds [4246-Views]
Celebrate guilt-free shopping to your fullest! [4148-Views]
Handbags and Gladrags [4142-Views]
VAIO returns to Middle Eastern in partnership with Nexstgo [4111-Views]
Eighth World Championship title in all categories for Tissot Ambassador Marc Marquez [4093-Views]
Unifonic empowers business to capitalize on instant messaging apps to engage with customer... [4050-Views]
New Strategic Partnership with Hewlett Packard Enterprise to help accelerate Abu Dhabi Dig... [4020-Views]
MBRU and King Saud University in Saudi Arabia join forces to enhance academic collaboratio... [3898-Views]
His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum Challenges the City to Be ‘I... [3874-Views]
Peugeot Boxer 4x4 Concept Revealed [3855-Views]
Saudi Arabia's Ministry of Energy highlights enhanced cybersecurity credentials at GITEX T... [3770-Views]
Dubai Land Department welcomes Saudi Minister of Housing [3697-Views]
Hazzaa AlMansoori Undergoes Medical Experiments at Stars City as part of His Scientific Mi... [3697-Views]
During a press conference to announce the completion of preparations of Summit that will b... [3672-Views]
Victoria Beckham Eyewear Debuts New Collection for Fall 2019 [3672-Views]
Team Abu Dhabi Stars Chase Double World Title Boost in China [3593-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories